Gusbourne Regulatory News (GUS)

28 Mar 2006 07:04

GUS PLC28 March 2006 28 March 2006 GUS plc Demerger of ARG and Experian GUS plc, the retail and business services group, today announces the next stepsin its plans for the separation of its two remaining businesses, Argos RetailGroup (ARG) and Experian. The Board of GUS proposes, subject to shareholder approval, that the twobusinesses should be separated by means of a demerger with both ARG and Experianbecoming independently listed on the London Stock Exchange. This is expected totake place in six to twelve months time. The demerger will enable all of GUS'existing shareholders to continue to benefit directly from an investment in boththese attractive businesses. It is also planned, subject to market conditions, that at the time of thedemerger Experian will issue new shares listed on the London Stock Exchange to acombination of existing GUS shareholders and new investors. This will enableboth ARG and Experian to have strong balance sheets and to continue to invest infurther growth initiatives. At this preliminary stage, GUS currently estimatesthat the issue of new Experian shares will comprise approximately 10% to 15% ofExperian's ordinary share capital. Each company will continue to be led by its existing experienced managementteams. At ARG, the Chairman will be Oliver Stocken, the CEO Terry Duddy and theFinance Director Richard Ashton. At Experian, the Chairman will be John Peace,the CEO Don Robert and the Finance Director Paul Brooks. The non-executivedirectors of ARG will include John Coombe and Andy Hornby, and of Experian willinclude Sir Alan Rudge and David Tyler. GUS will update the market accordingly as further decisions on the planneddemerger are made. Sir Victor Blank, Chairman of GUS, commented: "The separation of ARG and Experian is the final step in focusing GUS on feweractivities, a strategy that has delivered substantial value for shareholders.Both ARG and Experian are now well-positioned in their chosen markets and bothhave proven management teams and clear strategies for growth. A UK demerger will enable all of GUS' existing shareholders to continue toparticipate directly in the future development of these successful businesses." Bonds and loan notes GUS' outstanding bonds and loan notes will be held within Experian. Proposals inrespect of these bonds and loan notes will be developed in due course. Pensions As previously disclosed, GUS' two Defined Benefit pension schemes had modestdeficits at 31 March 2005. To improve the funding position, the Group is makinga further special contribution of £100m in March 2006 (£76m in March 2005). Future announcements GUS' Second Half Trading Update will be on 12 April 2006. GUS will announce itsPreliminary Results for the 12 months to 31 March 2006 on 24 May 2006. Enquiries GUS John Peace Group Chief Executive 020 7495 0070David Tyler Group Finance Director Finsbury Rupert Younger 020 7251 3801Rollo Head GUS announcements are available on its website, www.gusplc.com. This announcement is not an offer of securities for sale in any jurisdiction. No securities are being registered under the US Securities Act of 1933 and maynot be offered or sold in the United States absent registration or an exemptionfrom registration. No public offering of securities is being made in the UnitedStates. Certain statements made in this announcement are forward looking statements.Such statements are based on current expectations and are subject to a number ofrisks and uncertainties that could cause actual events or results to differmaterially from any expected future events or results referred to in theseforward looking statements. About Argos Retail GroupArgos Retail Group is the UK's leading general merchandise retailer with amulti-brand, multi-channel offer. Formed in June 2000, the group today comprisesArgos, Homebase and ARG Financial Services. Argos has over 650 stores in the UKand Republic of Ireland and sales of around £4 billion. Homebase has nearly 300stores throughout the UK and Republic of Ireland and sales of over £1.5 billion. About ExperianExperian is the global leader in providing value-added information solutions toorganisations and consumers. It has an unrivalled understanding of individuals,markets and economies around the world. Experian works with more than 50,000 clients across diverse industries,including financial services, telecommunications, healthcare, insurance, retailand catalogue, automotive, manufacturing, leisure, utilities, e-commerce,property and government. It has headquarters in Nottingham, UK and Costa Mesa,California. Experian's 12,000 people in 31 countries support clients in morethan 60 countries. Annual sales are in excess of £1.5 billion. This information is provided by RNS The company news service from the London Stock Exchange